Who is entrepreneur


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Who is entrepreneur

  1. 1. Who is Entrepreneur??????
  2. 2. What is Entrepreneurship? • • • • • Not Just Small Companies Not Just Start-Ups Not Just For-Profit Firms Not Just Non-Government Certainly not many “dot.com’s”
  3. 3. It is an Attitude or Approach to Management that Starts with Opportunity.
  4. 4. Entrepreneurs • Do things that are not generally done in the ordinary course of business • Some entrepreneurs become celebrities...others become ridiculed for their failed dreams • All contribute to the spirit of free enterprise
  5. 5. Four Ps of Entrepreneurship • • • • Pioneer Perspective Practice Performance
  6. 6. Entrepreneurship • Entreprendre...17th century French...the individual who undertook the risk of a new enterprise... “undertakers”. • They were “contractors” who bore the risks of profit or loss • Examples: soldiers of fortune, adventurers, builders, merchants and funeral directors
  7. 7. Entrepreneurs……….. • 14th century...Tax contractors...bore the risks of collecting taxes. If they collected more than the fee...they kept the rest as profit. • Called the “change agents” of progressive economies
  8. 8. Entrepreneurs……….. • “Essai sur la nature du commerce en general”...1755 ...describes an entrepreneur as a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using resources while consequently assuming the risk of enterprise
  9. 9. Entrepreneurs……….. • Adam Smith...The Wealth of Nations: spoke of the “enterpriser” as an individual who undertook the formation of an organization for commercial purposes • A. Smith...mentioned “role of industrialist...,person with unusual foresight who could recognize potential demand for goods and services”
  10. 10. Entrepreneurs……….. • “A thesis on Political Economy”...describes an entrepreneur as one who possessed certain arts and skills of creating new economic enterprises, yet a person who had exceptional insight into society’s needs and was able to fulfill them. • Influences society and is influenced by it.
  11. 11. Entrepreneurs……….. • John Stuart Mill...describes an entrepreneur as a business founder • Recognized entrepreneurship as central to economic theory • Carl Menger...Principles of Economics: “Economic change does not arise from circumstances but from an individual’s awareness and understanding of those circumstances
  12. 12. Entrepreneurs……….. • In 19th century entrepreneurs were: – – – – risk takers decision makers aspired to wealth gathered and managed resources to create new enterprises
  13. 13. Entrepreneurs……….. • Are not equal to inventors...inventor might only create a new product, whereas an entrepreneur will gather resources, organize talent, and provide leadership to make it a commercial success • Peter Drucker...”Resources, to produce results, must be allocated to opportunities rather than to problems...
  14. 14. Another View of Entrepreneurship • Peter F. Drucker (1964) ...’maximization of opportunities’ is a meaningful, indeed a precise, definition of the entrepreneurial job. It implies that effectiveness rather than efficiency is essential in business. The pertinent question is not how to do things right but how to find the right things to do, and to concentrate resources and efforts on them.
  15. 15. Another View of Entrepreneurship • Joseph Schumpeter...20th century talks about “creative destruction” whereby established ways of doing things are destroyed by the creation of new and better ways of getting things done • Described it as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...
  16. 16. Entrepreneurs...Traits • • • • • • • Self-confident and optimistic Able to take calculated risk Respond positively to changes Flexible and able to adapt Knowledgeable of markets Able to get along well with others Independent minded
  17. 17. Entrepreneurs...Traits II • • • • • • • Energetic and diligent Creative, need to achieve Dynamic Leader Responsive to suggestions Take initiatives Resourceful and persevering Perceptive with foresight
  18. 18. Common Myths About Entrepreneurs • Entrepreneurs are born and not made • Entrepreneurs are risk takers • You need a lot of money to be successful • All you need is a great idea • Entrepreneurs work long hard hours
  19. 19. Entrepreneurship “The pursuit of opportunity beyond the resources you currently control” Harvard Business School
  20. 20. A Process Definition of Entrepreneurship • • • • • • Pursuit of Opportunity Rapid Commitment and Change Multistage Decision Making Using Other People’s Resources Managing Networks & Relationships Compensating for Value Created
  21. 21. Entrepreneurship: A Process, Not a Person • • • • • In a social context Is an “action” definition Focus on doing rather than on facts Creating the right incentives Managers vs. Entrepreneurs
  22. 22. While it is a Process, the Person is still key • • • • Skills Knowledge Contacts Resources
  23. 23. Entrepreneurial Characteristics • • • • • • • • • Creativity and Innovativeness Propensity of Risk-taking Taking Initiative High Need for Achievement Oriented to Problem Solving Persistence Faith and commitment to Planning Independence Self-confidence
  24. 24. Need and importance of Entrepreneurship • • • • • • • • • Increasing National Production Offering Challenging Career Option: Reducing the Domination of Established Institutions and the Concentration of Economic power Reinvesting the profit in the area of profit generation Balanced Area Development Commercializing New Invention & Products Harness Youth Vigor: Making markets more competitive Making Society 'Enterprising'
  25. 25. Your own new enterprise serves your interest in significant ways Salary. Security Assets builder Perks. Independence Fulfillment
  26. 26. Factors Effecting Entrepreneur • Internal Factors • External Factors
  27. 27. Functions of Entrepreneur
  28. 28. Entrepreneurial Motivation & Barriers Motivating Factors a) Internal Factors: • Desire to do something new • Educational background • Occupational Background or Experience b) External Factors: • Govt. assistance & support • Availability of labor & raw materials • Encouragement from big business houses • Promising demand for the product
  29. 29. Classification of Entrepreneurship Contextual Basis: • Entrepreneurship (standalone start-up) • Corporate entrepreneur (new ventures within large established organizations) • Co-preneurship (a working professional starts a business & runs it alongside his/her job) • Technology Entrepreneurship (starts-ups with product & process which are technology-based) • Service entrepreneurship (start-ups in the services domain of activity) • E-entrepreneurship (start-ups wherein business is on the internet platform)
  30. 30. Classification of Entrepreneurship Novelty Basis: • Innovating Entrepreneurship • Imitative Entrepreneurship Intention Basis: • Build to sell Entrepreneurship (Serial Entrepreneurship) • Build to Last Entrepreneurship
  31. 31. Theory of Entrepreneurship • • • • • • • • • • • • • An Economic Theory Leibenstein’s X-efficiency Theory Dynamic Entrepreneurship Innovation Theory Harvard School Theory Theory of High Achievement Theory of Change Theory of Profit Theory of Adjustment of Price Theory of Market Theory of Social Change Theory of Entrepreneurial Supply Theory of Personal Resourcefulness Theory of Cultural Values
  32. 32. Concept of Entrepreneurship • It refers to the process of action an entrepreneur undertakes to establish his/her enterprise. It is a creative & innovative response to the environment. • It is thus a cycle of actions to further the interests of the entrepreneur. • One of the quality of the entrepreneurship is the ability to discover an investment opportunity & to organize an enterprise, thereby contributing to real economic growth. Entrepreneur Entrepreneur ship Enterprise Person Process Object
  33. 33. Development of Entrepreneurship • The entrepreneurial development is a key to achieve overall economic development through higher level of industrial activity. • It is a process in which persons are injected with motivational drives of achievement & insight of tackle uncertain & risky situations especially in business undertakings. • The process of development focuses on training, education, reorientation & creation of conducive & healthy environment for the growth of enterprises.
  34. 34. Approaches to Entrepreneurship Development • Develop & arrange the course content by analyzing needs & stating outcomes. • Choose the appropriate training methods. • Consider the subjects area, the nature of learning, the trainee populations, the trainers themselves & time & material factors. • Achieve training objectives.
  35. 35. Gateways into the Curriculum
  36. 36. What is EDP???? • Entrepreneurship Development Program (EDP) is designed to help a person in strengthening & fulfilling his entrepreneurial motive & in acquiring skills & capabilities necessary for playing his / her role effectively & efficiently. • There are three important variable: Location, Target Group & Enterprise.
  37. 37. Objectives of EDP • Develop & strengthen their entrepreneurial quality / motivation. • Analyze environment related to small industry & small business. • Helps in selecting Project/Product • Formulate Projects • Understand the process & procedure of setting up of small enterprises • Know & influence the source of help/support needed for launching the enterprise. • Acquire the basic management skills • Know the pros & cons of being an entrepreneur & • Acquaint & appreciate the needed social responsibility.
  38. 38. Issues of EDP • • • • Structure & Composition of EDPs Areas of Operation Fixing Priorities Lack of Specialist’s Support Some operational problems of EDP are: • Inherent inability • Diverse opinions • No proper strategy • Low institutional commitment • No local support • Non-availability of inputs • Poor follow-up • No adequate research facilities
  39. 39. Entrepreneurial Process
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